Zuo Heng, deputy director of the cinematic culture research department at the China Film Archive, said this marked a revitalization of cinematic realism.
The report suggests China's movie market has eyed a new approach while real-life stories and social issues attract audiences.
Last year, domestic feature films accounted for 62 percent of the nation's box-office revenue, the highest since the Chinese film industry started to take off in the early 2000s.
While Hollywood is dominated by movies about superheroes, China has seen a shift in tastes. Realistic themes have started to attract vast audiences who were previously more interested in action blockbusters and domestic comedies.
"Operation Red Sea" which was the top on last year's box-office charts, was based on true stories.
"Operation Red Sea" was inspired by the People's Liberation Army Navy's evacuation of nearly 580 Chinese nationals from Yemen in early 2015.
Jiang Yong, a film industry analyst in Beijing, said "Operation Red Sea" reinforced investors' confidence that a realistic contemporary film could also be a commercial success.
Social dramas reflecting changes in China or examining the lives of ordinary people have also won acclaim and success.
"A Cool Fish," a low-budget local comedy with no A-list actors, beat Hollywood rivals including "Wreck-It Ralph" and "Fantastic Beasts: The Crimes of Grindelwald," to dominate the box-office charts in late November. This film tackles hot social issues.
"Such success will encourage more talented people to join the creation of realistic stories. They can use their influence to boost the development of society," said Zhong Dafeng, a professor with the Beijing Film Academy.